Embracing digital transformation for sustainable development: Barriers to adopting digital twin in asset management within Singapore's energy and chemicals industry

In the era of Industry 4.0, digital twin has the potential to revolutionize asset management and contribute to the sustainable development of the energy and chemicals industry. This study aims to investigate barriers to adopting digital twin in asset management within Singapore's energy and chemicals industry through a literature review and interviews. It identified five categories of barriers: resource constraints, data management issues, technical challenges, lack of government and industry support, and strategic and cultural barriers. The five categories of barriers presented unique implications, mutually reinforcing their negative impact on digital twin adoption. The analysis of interviews revealed that the most prevalent barriers, as mentioned by the interviewees, were lack of successful use cases (78.6%), high investment (71.4%), and lack of effective data analysis techniques (64.3%). Lack of successful use cases hinders return‐on‐investment justification, high investment requirements compete with other operational priorities, and data analysis challenges impede the realization of digital twin's full potential. The findings provide organizations with a comprehensive understanding of early stage barriers to formulate targeted strategies, driving the industry towards increased competitiveness and sustainable growth.